A document issued by a taxing authority that confirms the property tax status of a parcel of land. This certification outlines outstanding taxes, penalties, and interest due on the property, or verifies that all taxes are current. It is often required during real estate transactions to provide assurance to potential buyers or lenders regarding the financial obligations tied to the property. As an example, it would detail any unpaid amounts if a property owner failed to remit property taxes for a specific year.
The significance of this document lies in its ability to mitigate risk. For buyers, it prevents unforeseen tax liabilities from becoming their responsibility after the purchase. For lenders, it protects their investment by ensuring that prior tax obligations do not jeopardize the property’s value or create a superior lien. Historically, obtaining such confirmation involved manual searches of public records; today, many jurisdictions offer digital access, streamlining the process and enhancing accuracy.
